[Abalone] markets, opportunities

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aquafarm news abalone culture

Markets, opportunities

The Abalone Farm, Inc. or AFI is a big player in the abalone market, very much like Shemberg's preeminent position in the seaweeds industry in the Philippines. AFI entered the abalone market in 1982, and has since successfully marketed at least six abalone products (see tables next page). In 1993, AFI distributed cultured abalone worth US$2 million into t h e US , Canadian, Japanese, Hong Kong, and New Zealand markets. This value is roughly equivalent to what the whole of the Philippines exported in 1991.

The fishery statistics for abalone export-import worldwide are not well-organized into a format coherent to the industry, reports AFI's Frank Oakes. Below are the major consuming markets based on AFI's experience.

- M T C / A P S

CHINA

Mainland China is the largest consumer nation for abalone. Its consumption is almost entirely in the canned form which is not considered pre- mium product in the Japanese and US mar- kets.

The Chinese consider canned abalone as a item of prestige, often presented as a show of affluence or demonstration of respect. It is customary in banquets and feasts.

The strong traditions surrounding abalone consumption have created a stratified market,"

notes Frank Oakes, "and this is based on per- ception of the quality of brands and originating countries." At the top of the market is Mexico's CalMex brand (H. fulgens) and the South Afri- can abalone (H. midae). At the low end is the New Zealand Black Foot (H. iris). Prices of off-brands depend on the market's top brands.

The Chinese market is very compressed,"

reports Oakes, "with the premium canned prices limited by the buying power of the elite."

China has a commercial fishery, import- ing 800-1,200 tons annually to the US.

J A P A N

Japan is the largest con- sumer of premium-quality abalone (live, fresh and fro- zen). But annual consump- tion has declined from

12,000 tons (1980-1990) to about 6,000 tons (1992).

Still, interested abalone farmers can still learn about the premium abalone mar- ket from Japanese con- sumers.

Canned abalone

Premium-quality

28 SEAFDEC Asian Aquaculture Vol. XIX No. 2 June 1997

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aquafarm news abalone culture

To these consumers, appearance is as important as taste and texture. The most prized is the black abalone, ezo awabi or Haliotis discus hannai, which is one of the eight species native to Japan and is harvested from the Ezo Prefecture. (The native fishery is his- torically significant and highly valued as a cultural resource.) The cultural pref- erence is so strong that smaller abalo- nes, like H. diversicolor supertexta or tokobushi, carry a connotation of infe- riority and sell at a large discount into weak and erratic markets.

But abalone farmers shouldn't de- spair. Abalone species that compare favorably in appearance and taste with ezo awabi can command premium prices, too. "AFI (was able to) provide

a live abalone for the premium market at US$32 per kg," reports Frank Oakes.

The abalone are of more uniform size and cost lower per piece. It had reached the high-margin niches such as resort hotels and competed well with ezo awabi.

SOUTHEAST ASIA

The Hong Kong market is the largest and most established.

(Hong Kong acts as a gateway to the mainland Chinese market.) Lucrative markets also exist in Taiwan, Singapore, Thailand, and other metropolitan centers.

"As Asian affluence increases, these markets will become more im- portant," Frank Oakes notes. "The influence of China and southeast Asia will be significant in determin- ing the location and product concepts best suited for future production sites."

US, Europe

The traditional market is California where a commercial fishery exists un- til the early 1970s. It is primarily ex- pensive, white tablecloth restaurants.

Abalone meat is removed from the shell and sliced into steaks which are quite popular.

"AFI entered the market in the 1980s with abalone fillets prepared from 7.5 cm cultured abalone (H.

rufescens)," Frank Oakes reports.

"With the growing number of (Asian- Americans), demand has increased."

This includes fresh abalone meat for sushi. Live cultured abalone also have a brisk market.

Europe is not yet a major market.

Present demand arises from the tradi- tional fishery for H. tuberculata. "The market is concentrated in France,"

notes Oakes, "but there is demand in the United Kingdom and the rest of Europe." The market is undersupplied and could be developed. The Euro- pean abalone species are small (100 g) and aquaculturists can easily pro- duce small abalones. Europe is a good region for future market expan- sion.

REFERENCE

FR Oakes and RD Ponte. 1996. The abalone market:

opportunities for cultured abalone. Aquaculture 140: 187-195.

Small abalone

Abalone steak

29 Vol. XIX No. 2 June 1997 SEAFDEC Asian Aquaculture

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aquafarm news abalone culture

Supply and price structure of major abalone-producing countries [estimated by F Oakes, Aquaculture 140 (1996): 187-195]. Roughly 8 0 % of these abalone products are consumed by Japan, China, and some southeast Asian countries. The rest go to the US, Mexico, Europe, and Korea.

Species Yearly supply(tons)¹ 1993 price (US$ per t o n )² Japan Haliotis discus

H. discus hannai

4,000 66,000

Hong Kong H. diversicolor diversicolor H. diversicolor supertexta

567 22,200

USA H. rufescens

H. carcharoides H. sorenseni H. fulgens

350 25,000

Mexico H. fulgens H. rufescens H. cracherodii

2,000 24,000

South Africa H. midae 600 25,000

Australia H. laevigata H. ruber H. roei

6,300 21,850

1Whole body including shell. ²Calculated as: Live weight (LWt) × 0.38, meat weight; LWt × 0.28, steak weight; LWt × 0.34, canned weight; 1 can = 750 g LWt. US$1 = Mex3.1 = AUS$7.7 = HK$7.7 = ¥135

Products derived from Haliotis rufescens cultured at The Abalone Farm, Inc. and their target markets [by F Oakes, Aquaculture 140 (1996): 187-195]

Product Size¹

(grams)

Market Product use Customers

Live (ezo quality) 100-110 Japan sushi, sashimi hotels, resorts, restaurant Live (tokobushi) 85-100 US, Hong Kong grilled, steamed distributors, restaurants Live petite 75-85 US, Hong Kong traditional Asian cuisine specialty seafood, distributors Premium fillet

(fresh/frozen)

85-100 US, France traditional US restaurant cuisine

restaurants, specialty seafood distributors, retail sales Petite fillet

(fresh/frozen)

75 US, France restaurants, traditional European cuisine

restaurants, institutional food service, retail sales Processed whole

foot (canned)

65-95 China, Hong Kong SE Asia

restaurants, institutional food service, supermarkets, retail sales

1Whole body weight including shell.

30 SEAFDEC Asian Aquaculture Vol. XIX No. 2 June 1997